Product AML Risk Manager for Life Insurance Complete End-to-End AML Coverage for Life Insurance A Comprehensive Solution for AML Detection, Investigation, Case Management and Reporting Illegal money laundering activities continue to threaten financial organizations across the globe. AML Risk Manager from Fiserv can help life insurance companies and intermediaries in establishing a comprehensive and cost-effective risk-based anti-money laundering (AML) strategy geared for your industry that encompasses robust risk mitigation and regulatory reporting functionality. Life insurance companies face the risk of being targeted by money launderers, terrorists and fraudsters as certain Life products can be used to launder the proceeds of crime. Local regulators as well as intergovernmental organizations like the Financial Action Task Force (FATF) have recognized this risk and require life insurance companies and intermediaries to establish AML programs and file regulatory reports if suspicious activity is found for life insurance policies, annuity contracts, and any other insurance products with cash value or investment features. To meet these requirements and mitigate these risks, compliance officers need to be armed with processes and technology suited to the specific needs and risks of life insurance firms. With our proven track record providing AML solutions to insurance companies, AML Risk Manager can help quickly and cost effectively manage and adapt to these new challenges and help meet regulatory compliance requirements. AML Risk Manager covers a wide range of anti-money laundering processes and practices in one fully-integrated solution to improve risk protection and management for your life insurance firm. Improve risk protection Streamline compliance operations Reduce operational costs Improve investigation efficiency Implement a risk-based approach to suspicious activity detection Meet regulatory requirements Key Capabilities Policy and Event Monitoring AML Risk Manager provides innovative monitoring of transactions and events involving policies, parties and producers based on known insurance money laundering scenarios, such as lump sum payments, early withdrawals, frequent address changes or high-risk payment methods. List Checking AML Risk Manager checks policy holders, beneficiaries and other parties against a variety of watch lists depending on your specific requirements, including OFAC, OSFI, UN- Sanctioned lists, EU s e-ctfsl list, FinCEN s 314(a) requests and commercially available third-party lists (including PEP and terrorists). Custom or internal lists are also supported.
Risk Scoring AML Risk Manager can create a risk rating for each policy and policy holder based on a risk profile using characteristics such as the customer s Politically Exposed Persons (PEP) status, country, product type and policy value. Each risk rating and profile is updated and monitored on an ongoing basis with any changes in the subject s characteristics or behavior. Risk rating customers and policies enable you to immediately respond to regulator requests to show your highest risk relationships. Also, risk scores inform detection scenarios ensuring that your resources are used effectively to investigate the activity related to the highest risk policies first. Investigation and Analysis AML Risk Manager provides an easy-touse investigation environment for advanced drill-down accessing all policy transactions, events and information including activity with associated parties. Network or link analysis provides an innovative and highly effective way to help investigators visualize and investigate policy activity to uncover suspicious links and associations between parties, intermediaries and companies listed on each policy. Case Management AML Risk Manager provides a fullyintegrated case management system to streamline compliance operations and to help investigators organize, prioritize and manage investigations while creating a permanent audit trail for regulatory review, if needed. Within a case, all relevant information related to the case can be stored and easily updated as new information and evidence is uncovered. Global Coverage Whether your life insurance firm is organized by country or product line, has a central compliance department or teams per business unit, our flexible system is easily configured to meet your specific requirements. AML Risk Manager supports a variety of country-specific compliance regulations and reporting requirements, and is able to manage multiple currencies and languages. AML Risk Manager supports regulatory reporting to FINTRAC, FinCEN and many other regulatory bodies around the world. System Flexibility Fiserv offers a highly flexible and configurable detection system that makes it very fast and easy to adjust or add new risk scenarios as needed. Configurable Workflow AML Risk Manager offers configurable workflow for automatically routing alerts and cases based on your team s requirements. Built in checkpoints streamline the end-toend processes, from investigation to case management and reporting. AML Risk Manager Identifies Key Money Laundering Indicators: Unusual number of policy owners per address Unusual number of policies per customer (smurfing) Change of address, beneficiary or ownership, followed by a large payment Deposits higher than the face amount of the policy Change of bank account associated with a policy followed by a large withdrawal
Early cancelation or surrender within a certain period and/or above a certain value Premiums paid with cash or other high-risk instruments International transfers by Politically Exposed Persons Policies with high in-and-out activity within a certain period Significant change from normal or expected behavior Investment exceeds normal value for income or occupation Frequent loan withdrawal with corresponding cash payment Regular premium payments followed by large lump-sum investment Reduction in face amount or change to cheaper policy to get refund Surrenders before or after certain tax/age dates Multiple uses of free-look/cooling-off period Using AML Risk Manager for Life Insurance Monitoring, investigating and reporting suspicious behavior and activities are broken down into four simple steps: Alert, Investigate, Track and Report. Alert: Effective and Accurate Policy and Transaction Monitoring AML Risk Manager provides innovative policy and party monitoring and detection developed to uncover insurance money laundering scenarios. When unusual activity is detected, alerts are delivered directly to the desktop and ranked by risk so that the most suspicious alerts can be investigated first. Alerts can easily be segmented based on your organizational structure, policies and processes. For example, PEP matches can be forwarded to one group, while suspicious activity alerts are forwarded to another. The solution uses a unique combination of detection techniques including analytics, rules, behavioral profiling, peer group analysis, and list matching, designed specifically to identify insurance money laundering risks. This unique approach delivers highly accurate results minimizing the numbers of false positives your compliance team receives. AML Risk Manager also monitors nonfinancial events such as change of address, change of beneficiary and early redemption/ cancelation, as well as monitoring activity around relevant dates such as the end of the free-look period, the planned maturity date and tax considerations. Intermediaries can also be monitored leveraging the solution s peer group analysis capability to detect any abnormal broker or agent behavior. Further, AML Risk Manager scores each policy at policy acceptance and on an ongoing basis, so that high-risk customers are monitored more closely. In addition, the solution s list matching capability provides real-time or batch mode list screening and analysis for new and existing customers against standard or internal lists. All detections will result in an alert that can either block a transaction immediately, or mark it as high-risk for investigation and ongoing monitoring. At policy opening, the list matching functionality can be conducted in real time via Web services.
The monitoring technology for AML Risk Manager generates highly accurate alerts of detected suspicious behavior directly to your desktop. Investigate: Detection Results and Tools Improve Investigation Efficiency AML Risk Manager offers a user-friendly graphical investigation environment making it fast and easy to analyze alerts. After clicking on an alert, users have immediate access to policy activity or a series of transactions that triggered the alert with full access to historical data. By capturing all policy activity and information, you can trace any links and associations to analyze the networks between policy holders, beneficiaries or intermediaries. With fast drill-down capabilities, and an intuitive user interface, you can quickly analyze suspicious activity to streamline your investigation process. AML Risk Manager provides link analysis to identify suspicious networks between policy holders and potentially agents. In this example, a party is both a captive agent on a policy as well a recipient of funds from that customer s policy.
Track: Premiere Case Management System Speeds Evidence Capturing Once an activity is deemed to warrant a full case investigation, the next step is to open a case and track all information related to this event or policy. A fullyintegrated case management system streamlines compliance operations and helps investigators organize, prioritize and manage investigations. Within a case, all relevant information related to the case can be stored and easily updated as new information is uncovered. New cases can be created or entered manually, if needed. A variety of supporting documents can be attached to each case including correspondence, documentation, scans and images, making it faster, easier and more efficient to manage cases. The solution s case search function allows cases to be searched according to any field such as name, phone numbers or addresses. An audit trail is automatically recorded for review by regulators including the complete case history and a detailed log of all actions taken and reports filed. Report: Automated Capabilities Streamline Regulatory and Management Reporting Under current requirements, when a transaction or policy meets suspicious activity criteria, a report should be sent to the Financial Intelligence Unit (FIU). AML Risk Manager offers flexible reporting capabilities that automatically generate reports based on defined suspicious activity criteria and can be configured based on the specific reporting requirements imposed by local authorities or regulatory bodies. AML Risk Manager includes a library of reporting templates, including SARs and threshold-based reports supporting both paper and electronic format, as required. The solution provides a variety of standard management reports such as number of reports generated per country for a given period of time, alert type, cases, workflow and workload.
AML Risk Manager generates regulatory reports as well as internal management reports, for example, showing a breakdown on the types of alerts generated, graphically, by percentage and numbers. Leveraging a Layered, Risk-Based Approach AML Risk Manager facilitates a riskbased approach on several levels. Its risk views rank orders policies and parties that display behavior (be it premium payments, withdrawals, policy changes or a combination) indicative of money laundering risk. From those risk views, rules and alert definitions enable the insurer to further segment and select policies for alerting based on different risk characteristics. For example, alert withdrawals above $100,000 if the customer is domestic, above $50,000 if the customer is foreign, and above $25,000 if the customer is foreign and a PEP. Simply add risk characteristics as you see fit: Was the withdrawal wired to a third party? Was the withdrawal preceded by a recent change of address? You can then assign different priorities and workflows to different alert types. Customer risk scoring adds yet another dimension for prioritizing what behavior should be alerted and investigated. Finally, the mere process of alerting those policies or parties that should be investigated by a compliance officer who has the option to escalate an initial review to a full case investigation is an implementation of a risk-based approach. Fiserv Offers Integrated Solutions for Financial Crime Management Our integrated solutions for controlling risk across your enterprise: Increase profitability Improve risk insight Protect against financial crime
Fiserv is driving innovation in Payments, Processing Services, Risk & Compliance, Customer & Channel Management and Insights & Optimization, and leading the transformation of financial services technology to help our clients change the way financial services are delivered. Visit www.fiserv.com for a look at what s next now. Fiserv offers integrated solutions for antimoney laundering and fraud, built upon a single technology platform. Each solution can operate separately or used together as your institution requires. While there are many tools that can manage distinct risk areas, very few can combine processes and crime areas for a consolidated, holistic view of risk prevention and management. Combining these processes directly impacts the bottom line, helping institutions increase profitability and also gain a greater business insight into risk. Connect With Us For more information about AML Risk Manager, call 800-872-7882, email getsolutions@fiserv.com or visit www.financialcrimerisk.fiserv.com. Fiserv, Inc. 255 Fiserv Drive Brookfield, WI 53045 800-872-7882 262-879-5322 getsolutions@fiserv.com www.fiserv.com 2015 Fiserv, Inc. or its affiliates. All rights reserved. Fiserv is a registered trademark of Fiserv, Inc. Other products referenced in this material may be trademarks or registered trademarks of their respective companies. 630-15-27162-COL 09/15